Mandatory bank reserves in Mozambique increased again in April, reaching the highest level of the year at 227.4 billion meticais (approximately $3 billion), according to data from the Bank of Mozambique (BoM).
This rise follows a 28% cumulative drop in the first quarter of 2025, marking a reversal in the recent trend. However, the current figure still remains below the all-time high of 291.4 billion meticais (around $3.8 billion) recorded in December 2023, just before reserve requirement ratios were eased.
The BoM had significantly raised these ratios during the first half of 2023 in an effort to curb excess liquidity and ease inflationary pressures. By June 2023, commercial banks were required to hold 39% of deposits in local currency and 39.5% of deposits in foreign currency as reserves with the central bank. Due to growing difficulties in accessing foreign exchange, the business sector pushed for a revision of these requirements.
The response came in late January 2025, when the Monetary Policy Committee (CPMO) decided to cut the ratios to 29% in local currency and 29.5% in foreign currency, aiming to release liquidity and stimulate economic activity.
However, BoM Governor Rogério Zandamela later stated publicly that no further reductions were planned, emphasizing that liquidity levels in the financial system — including foreign exchange availability — were currently adequate. “The January measure released a significant amount of liquidity. There is no need at this time to alter the ratios again. This is not something to be done lightly,” the governor said in March.
In subsequent meetings held in March and May, the CPMO opted for further cuts to the benchmark interest rate but kept reserve ratios unchanged. According to the central bank, maintaining the stability of these reserves is key to ensuring the resilience of the banking system and the effectiveness of monetary policy.
Source: Lusa
